Affordable housing option unveiled in Christchurch tender

Affordable housing option unveiled in Christchurch
tender

By Pam Graham

Oct. 31 (BusinessDesk) -
State-owned Housing New Zealand has unveiled a flagship
project for medium-density inner city developments in its
$15 billion housing portfolio it says could become a new
mixed tenure housing model for New Zealand.

The tender
document for 399 Manchester Street in Christchurch on the
fringe of the city's earthquake-devastated central business
district addresses the need for affordable housing by
building 20 to 30 one and two bedroom apartments, a third of
which will be owned or leased by Housing New Zealand.

"It
is to be a demonstration site - showing innovative planning,
technology, building and ongoing management systems that
will become the benchmark for developments on Housing New
Zealand sites in New Zealand and for developers to showcase
globally," the glossy tender document says.

The
development is essentially a public-private partnership but
at $6 million to $7 million in total value is too small to
interest large public-partnership operators looking to
partner government in social housing, according to an
industry insider.

The project is not using the standard
Treasury document for PPPs. The government's housing
portfolio is larger than its school portfolio.

The tender
invites expressions of interest to design and build the
first of a series of high-profile game-changing housing
developments.

"This project is Housing New Zealand's first
flagship redevelopment project in Christchurch - a
demonstration of the innovative rebuild to be applied to
this city," the document says.

Expressions of interest are
wanted for an equity and development group to design,
engineer and redevelop the site.

Two respondents, known as
contenders, will be short-listed and Housing New Zealand
will contribute a maximum $200,000 plus GST to the cost of
developing proposals.

A joint venture, subject to approval
by the Housing New Zealand's board, is then envisaged with a
success respondent.

Housing New Zealand will purchase, or
lease, up to a third of the units as social housing, with a
maximum total development cost of $250,000 per unit. It will
also make annual service payments for up to 25 years.

The
partner will provide equity and will be the primary
developer.

The 2000sq m site is adjacent to one of New
Zealand's oldest and largest Kauri homes, Holly Lea, which
is also known as McLeans Mansion, the document
says.

Housing New Zealand own 69,000 properties in New
Zealand and Finance Minister Bill English said at the
weekend that lessons were being learned from the
Christchurch rebuild which could be used elsewhere to
develop affordable housing.

"The government owns $15
billion worth of houses, and, in most cities, the best
opportunities within the cities is actually on the
government-owned Housing Corp land," English said on TVNZ's
Q+A.

Housing New Zealand talks of a mixed tenure community
development with some units privately owned, some leased and
some social housing.

"What’s on offer here is a fresh
start with a fresh approach," the Housing New Zealand
document
says.

The Wellington-based BusinessDesk team led by former Bloomberg Asian top editor Jonathan Underhill and Qantas Award-winning journalist and commentator Pattrick Smellie provides a daily news feed for a serious business audience.

CONTACT BUSINESSDESK

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>